
I I
Consumer and Business Services
Government
of
South Australia
Attorney-General's Department
Clarifies and formalises the objectives of the association. To become incorporated, the
association must state clearly the purposes for which it is being formed. The purposes,
frequently known as the objects of the association, are fixed in the rules of the association
(also known as the constitution). The regulating body (CBS) must be advised of any changes
eg to the rules or a change of public officer etc.
Regulates how the association shall operate. The association’s rules should be designed to
ensure that the association operates fairly, responsibly and accountably to its members.
Protects against dishonesty and conflict of interest decision making processes which must be
in the best interests of the association and its members
Allows an organisation to apply for a much wider range of public and private funding. Many
government and philanthropic organisations make it a basic requirement that applicants for
funding are incorporated.
Allows some incorporated bodies to gain state-based tax advantages.
Please note that this factsheet focuses on South Australian incorporated associations; for
Commonwealth purposes, the Australian Charities and Not-for-profits Commission (ACNC) is
the responsible body for regulating charities. Not all incorporated associations are entitled
to registration as a charity; however, your organisation must be registered with the ACNC to
apply for charity tax concessions. Further information is available at www.acnc.gov.au .
As mentioned earlier an incorporated association is a separate legal entity for tax purposes
and is required to pay any relevant taxes and abide by all relevant laws. Some associations
may be entitled to tax concessions and exemptions (particularly if they are “charitable”
bodies). Advice from the Australian Taxation Office, ACNC or independent legal advice may
be needed for this.
Considering the benefits incorporation provides within the Act, the cost for incorporation is a
worthwhile investment.
The process of incorporation involves some work for the association in drafting a set of rules,
completing the necessary application form and meeting other requirements. This factsheet is
designed to provide you with guidance and direction through the basic steps when you are
considering incorporating your association.
Once incorporated, there are some regular compliance tasks required such as the keeping of
records, holding of elections, submitting of periodic returns and any other requirements as set out in
the rules of the association. Submission of periodic returns are only required by prescribed
associations.
A ‘prescribed association’ is defined in section 3 of the Act as an incorporated association that has
had gross receipts, in the previous financial year, which are in excess of $500,000.
‘Gross receipts’ of an incorporated association means the total amount of the receipts of the
association including any grant or subsidy paid to or on behalf of the association but does not
include:
any money received by way of a membership fee; or
subscription, levy or other fee, if any, paid by a member; or
a payment as a devise or bequest; or
a payment from the sale of any of the association's assets that had not been originally
purchased by the association for the purpose of resale.